TOKYO , Japan -LRB- CNN -RRB- -- Sony blamed the global economic slowdown , increased competition and an appreciating yen for a 95 percent drop in third-quarter profits , as the company announced its results Thursday .

Customers check Sony 's Bravia brand LCD TVs at an electronics shop in Tokyo , Japan .

Profits for the quarter , which ended December 31 , fell from nearly 200 billion yen -LRB- $ 2.2 billion -RRB- in 2007 to about 10 billion yen -LRB- $ 110 million -RRB- in 2008 .

Across the company , sales were down 25 percent , but electronics and games sales were especially hard hit .

Sales of games , including the company 's popular PlayStation series , fell 32 percent over the year . Sales of electronics decreased by nearly 30 percent .

The appreciation of the yen also cut into profits .

A stronger yen makes Japanese products more expensive or forces companies to lower their profit margins to keep prices the same .

Last week , Sony warned that it will close out the fiscal year , which ends March 31 , with an operating loss of 260 billion yen -LRB- $ 2.9 billion -RRB- , its first in 14 years . Watch what lies ahead for Sony ''

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Sales were down 25 percent across the company

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Electronics and games especially hard hit , with sales falling 30 percent or more

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Sony warned last week it will close out fiscal year with operating loss of $ 2.9 billion